There Are Only a Handful of Dow Stocks That Yield Over 3%. Here's My Top Pick to Buy Before September Ends.
Chevron may look like an old-school oil stock, but its emerging power business could give dividend investors a new reason to pay attention.
Overview
The Dow Jones Industrial Average (DJINDICES: ^DJI) may be packed with some of America's biggest and most recognizable companies, but investors looking for serious income will find that the index itself is surprisingly stingy, with a yield of around 1.5% as rising share prices have outpaced dividend growth.
This leaves only a handful of Dow stocks offering yields near 3% or higher -- and among them, Chevron (NYSE: CVX) stands out to me for a reason that goes well beyond where oil prices are headed.
Details
In June, Chevron's wholly owned subsidiary Energy Forge One signed a 20-year power purchase agreement with Microsoft (NASDAQ: MSFT) to supply electricity to a data center campus in Reeves County, Texas. A power purchase agreement is simply a long-term contract to buy electricity at agreed terms. The development, called Project Kilby, is designed to reach roughly 2.67 gigawatts of capacity, enough to power more than 530,000 Texas homes, according to Bloomberg.
Source
Originally published at www.fool.com.